MEETING OF THE KOOCHICHING COUNTY BOARD OF COMMISSIONERS
Held on Tuesday, December 13, 2005; 10:20 a.m.

MEMBERS PRESENT: Commissioners Hanson, Adee, Lepper, Pavleck

MEMBERS ABSENT: Commissioner Briggs

OTHERS ATTENDING: Bill Gray, Rod Otterness, Dan McCarthy, Ron Laurion, Marty Cody, Doug Grindall, Dennis Hummitzsch, Duane Nelson, Terry Murray, Richard Lehtinen, Steve Blair, Larry Beach, Paul Mielke, Terry Glowack, John Mastin; Reporters Laurel Beager and Roger Jerome

2005/12-01 Motion by Adee, seconded by Lepper to approve the agenda with additions and deletions. Voting yes: Hanson, Adee, Lepper, Pavleck. Motion carried.

2005/12-02 Motion by Pavleck, seconded by Adee to approve the minutes from the November 22, 2005 special meeting with correction. Voting yes: Hanson, Adee, Lepper, Pavleck. Motion carried.

2005/12-03 Motion by Pavleck, seconded by Lepper to accept the recommendation of the Insurance Committee for the 2006 County Medical Insurance Plan through the NE Cooperative with medical coverage to decrease with a $750 deductible and total out of pocket of $1,250 for single coverage and a $1,500 deductible and total out of pocket of $2,500 for family coverage, dropping the wellness benefit of $250 for each covered person and with the three-tier drug co-pay deductible to increase to $750 for single and $1,000 for family. The medical contract is for 12 months with Blue Cross/Blue Shield as the provider with rates of $347.50 single and $929.50 family with the Health Account to pay the amount over the employer family cap. Motion further approves renewal of the Flexible Spending Plan with MII Life Select Account through the NE Cooperative for 2006 at no change from 2005. Voting yes: Hanson, Adee, Lepper, Pavleck. Motion carried.

2005/12-04 Motion by Lepper, seconded by Adee to approve payment of the Auditor claims in the amount of $35,364.87, to approve payment to Flaherty and Hood in the amount of $1,066.16 for services on the Gasification Project’s bonding bill application with payment from the 2005 Legislative Budget and to approve payment of the monthly County Board expense claims in the amount of $3,907.83. Payment detail on file in the Auditor/Treasurer Department. Voting yes: Hanson, Adee, Lepper, Pavleck. Motion carried.

2005/12-05 Motion by Pavleck, seconded by Adee to approve a service contract for the County’s annual indirect cost allocation plan with Maximus for services in 2005 for cost reimbursement for administration of federal programs. Voting yes: Hanson, Adee, Lepper, Pavleck. Motion carried.

2005/12-06 Motion by Lepper, seconded by Adee accepting the recommendation of the County’s License Committee granting the following 2006 Tobacco Licenses to: Christiansen Store, Korner Kwik Stop, The Loon’s Nest, “Y” Knot Quick Stop, Woodland Inn, Island View Lodge, 65 Express, Nelson’s Store, Rainy Lake Spirits, Thunderbird Lodge, Rainy Lake One Stop, Country Sampler Bar and Restaurant, Northwoods Y, Inc., Lu’s, Road House Night Club, Sha Sha Resort. Motion further accepts the recommendation of the County’s License Committee granting the following 2006 Liquor Licenses as follows: 19th Hole, Inc On Sale and Sunday Intoxicating Liquor; Nelson’s Store Off Sale Intoxicating; Road House Nightclub, Inc On Sale Intoxicating; Lu’s On Sale Off Sale and Sunday Intoxicating Liquor; Northwoods Y Inc. On Sale Off Sale Intoxicating and On Sale Off Sale 3.2 % Malt Liquor; Country Sampler On Sale Off Sale and Sunday Intoxicating Liquor; Sha Sha Resort On Sale Off Sale and Sunday Intoxicating Liquor; Thunderbird Lodge On Sale Off Sale and Sunday Intoxicating Liquor; Woodland Inn On Sale Off Sale and Sunday Intoxicating Liquor; Island View Lodge On Sale Off Sale and Sunday Intoxicating Liquor; Rainy Lake Spirits Off Sale Intoxicating Liquor; Christiansen’s Store Off Sale 3.2% Malt Liquor; Korner Kwik Stop Off Sale 3.2% Malt Liquor; The Loon’s Nest Off Sale 3.2% Malt Liquor; Rainy Lake One Stop Off Sale 3.2% Malt Liquor. Voting yes: Hanson, Adee, Lepper, Pavleck. Motion carried.

2005/12-07 Motion by Adee, seconded by Pavleck to approve a 2006 Lease Agreement with the Occupational Development Center for space in the County-owned Northland Day Activity Center Building as recommended by the Management Committee. Voting yes: Hanson, Adee, Lepper, Pavleck. Motion carried.

000 The County Management Committee submitted a request to the Board that in making
sure all options have been explored for providing fire service to the rural area and due to
the reluctance of the City to enter into a long term agreement to provide stability in cost for
the taxpayer, the Committee asks that the Board not act on the City’s three-year proposal
to provide fire service to the rural area and allow the Committee members to further
explore a rural fire department, separate or in conjunction with other rural fire departments,
to see if in the long term it is a better cost option for the taxpayers. Commissioner Pavleck
expressed his disappointment in the City’s way of handling this matter and strong arming
the public with their position. Bill Gray, representing Rural Fire Association, stated to the
Board that fire service will be provided one way or the other but they agree with the
County’s Committee to explore all options. The City wants 1/3 of their budget paid by the
rural area but provides no representation or investment to the rural area. The City
Administrator stated that at the meeting held by the City last night, the council stated that a
recommendation would be in front of them at their next regular meeting to extend their
three-year proposal to six years, keeping $150,000 as the annual charge for the extended
years, that they will look at creating a task force to review the formula for charging fire
service and to put in an out clause in their contract proposal using a one year notification
term. Dan McCarthy asked the City Administrator how they arrived at the position that the
termination date to end service with the Rural Fire Association under the current contract
became April 1, 2006. The City Administrator stated that the City’s position was based on
their legal counsel’s review of the current contract with Rural Fire Association. Ron
Laurion expressed that a taxing district is the right forum for funding the service and
options can be looked at for helping those with low income. In requesting direction, the
Board was informed that the Rural Fire Association was meeting tonight and would
provide a recommendation to the County Board to allow some time for exploration of a
Rural Fire Department and that the study will be under timeline and before the April 1,
2006 termination date set by the City to end fire service to the rural area.

2005/12-08 Motion by Pavleck, seconded by Lepper authorizing the County Management
Committee to work with Rural Fire Association members to explore a rural fire
department, separate or in conjunction with other rural fire departments, to see if in the
long term it is a better cost option for the taxpayers with an update to the County Board in
January. Voting yes: Hanson, Adee, Lepper, Pavleck. Motion carried.

000 The County Assessor informed the Board that the State requires counties to select from two options for Payment in Lieu of Taxes for state lands. One option is to select the $3.00 (adjusted for inflation) per acre for natural resources land and the second option is three-fourths of one percent of the appraised value of all acquired natural resources land, requiring the County to appraise the lands and submit the valuation to the State. The counties are allowed to change options. The Assessor recommended to the Board to select the option based on appraised value at this time as it would produce an increase in the payment based on the new valuation he would submit to the State.

2005/12-09 Motion by Lepper, seconded by Pavleck that Koochiching County opts for the formula for Payment in Lieu of Taxes for states lands as three-fourths of one percent of the appraised value of these lands as recommended by the County Assessor. Voting yes: Hanson, Adee, Lepper, Pavleck. Motion carried.

2005/12-10 Motion by Adee, seconded by Pavleck accepting the recommendation of the Highway Engineer to designate Unorganized Township Road 488 as a County State Aid Road as follows: to designate as County State Aid Highway No. 488 beginning at a point on County State Aid Highway No. 138, said point being at or near the west side of the Southeast Quarter of the Northeast Quarter of Section 31, Township 71 North, Range 22 West; thence in a easterly direction approximately .6 mile and there terminating in the Northwest Quarter of the Northeast Quarter in Section 32, Township 71 North, Range 22 West, length 0.6 mile. Voting yes: Hanson, Adee, Lepper, Pavleck. Motion carried.

000 The Board Chair requested the Highway Engineer to provide a report on the Northome Highway Maintenance Contract since it has been a year since the last bidding under a revised contract. In addition, the Board Chair asked the Highway Engineer to send the Board’s appreciation to his staff for the great job in maintaining the roads during the recent ice and snow storm.

000 The Land Commissioner informed the Board that Erik Lund and Daniel Neary were hired as County Foresters with a starting date of December 19, 2005.

000 The Land Commissioner reviewed the results of the November 16, 2005 timber auction: all tracts were sold at auction selling 23,281 cords for a total auction sale value of $977,086. The Land Commissioner stated that this auction sale included blown down wood.
2005/12-11 Motion by Adee, seconded by Lepper that as of December 31, 2005 to end the personal leave of absence allowed under M.S. 3.088 for Duane Nelson from the position of Undersheriff while he served his elected term of office as County Sheriff and further, to accept the separation of Undersheriff Duane Nelson as of December 31, 2005 from County employment. Voting yes: Hanson, Adee, Lepper, Pavleck. Motion carried.

2005/12-12 Motion by Lepper, seconded by Pavleck authorizing the Sheriff to seek bids for replacement of two squad vehicles as planned in the 2006 County Sheriff Budget, with bid award and purchase to be done in 2006. Voting yes: Hanson, Adee, Lepper, Pavleck. Motion carried.

000 The Community Service Director informed the Board that the Agency received a grant in the amount of $47,250 from Otto Bremer Foundation for the purpose of recruiting, and supporting licensed foster care homes in Koochiching County. Due to the lack of interest in the County, the majority of children ordered for foster care are being placed outside the county, which is an additional hardship for these children and additional cost to the County. With this grant, great efforts will be made to recruit interest in the County for foster care homes to help our children and reduce cost at the same time. The grant will allow contracting with a provider to focus on this goal.

2005/12-13 Motion by Lepper, seconded by Pavleck to accept the Otto Bremer Foundation Grant of $47,250 with the local match being that of in-kind service for the purpose of recruiting, and supporting licensed foster care homes in Koochiching County as recommended by the Community Service Director. Voting yes: Hanson, Adee, Lepper, Pavleck. Motion carried.

2005/12-14 Motion by Lepper, seconded by Pavleck to approve a service agreement with Tammy Jo Crawford-Braaten for recruitment, retention and training of foster care providers in Koochiching County with funding from the Otto Bremer Foundation Grant as recommended by the Community Service Director. Voting yes: Hanson, Adee, Lepper, Pavleck. Motion carried.

2005/12-15 Motion by Pavleck, seconded by Adee to renew the following service agreements for 2006 with no change from 2005 as recommended by the Community Service Director: AEOA Congregate Meals, AEOA Home Delivered Meals, Brenda Crowe, Consumer Directions, First Call For Help, Sharon Frank, Raynita Houglum, REM Fiscal Support, and Summit Fiscal Agency. Voting yes: Hanson, Adee, Lepper, Pavleck. Motion carried.

2005/12-16 Motion by Pavleck, seconded by Lepper authorizing the Environmental Service Director to recruit and select applicants to fill the vacant positions on the Planning Commission and Board of Adjustment. Voting yes: Hanson, Adee, Lepper, Pavleck. Motion carried.

000 The Environmental Service Director provided the Board an update on the Jackfish Bay Area Sewer Project. The public meeting held by project representatives on November 29, 2005 there were approximately 70 in attendance and the Director felt it served as a good question and answer forum. The directional drillers continue to look at drilling options for the rock areas. A few more easements have come in but there are still about 70 not signed and in the near future, a request may be coming to the Board to condemn additional properties needed for the sewer main system.

2005/12-17 Motion by Lepper, seconded by Pavleck that due to questions with the revisions made by the Big Fork River Board to the Big Fork River Plan, to defer a review of the revisions to the Planning Commission and provide a recommendation to the County Board for approving the revised Big Fork River Plan. Voting yes: Hanson, Adee, Lepper, Briggs. Motion carried.

000 The Board Chair called for public comment at 11:45 a.m. Larry Beach referencing a map handed out at the November 29 public meeting on the sewer project, stated that this was a threat to the property owners not giving an easement for $1.00. The map shows the placement of grinder stations near the roadway for those not giving an easement for $1.00. Paul Mielke also referencing the map, stated that the grinder station will be placed in his driveway. He stated the issue is not that they don’t support the sewer system but feel there is an inequity in charging the cost of the system as those that have maintained a good system should not pay the same as those who have not. That is why he and others are requesting compensation for their easements. He also stated that the County Board under previous highway business was looking to upgrade County Road 94 under a proposed CSAH plan but he feels the contractor for the sewer project is responsible for any repair of the road due to the sewer installation. Mr. Mielke stated that though a $25 charge for rural fire service is low, he believes that all options should be explored and rather coverage be optional, not mandatory and if not, it should be fair. Dan McCarthy asked when the Board would be dealing with the overage in the 2005 County Attorney Budget for contracting of other legal service. The Coordinator stated that the plan was to wait until the end of November to study the status of the 2005 County Budget in all areas and make adjustments accordingly and would have the recommendations to the County Board at their December 20, 2005 meeting.

000 The Complex Superintendent provided the Board the annual building inspection report and a request to redo the floor in the dispatch unit in the Law Enforcement Center due to the placement of new stations in the unit.

2005/12-18 Motion by Lepper, seconded by Adee to approve expenditure up to $3,800 from the 2005 Sheriff’s Budget (approves line item adjustment to the budget) to replace the floor in the Dispatch Unit due to placement of new dispatching stations. Voting yes: Hanson, Adee, Lepper; abstaining: Pavleck. Motion carried.

2005/12-19 Motion by Lepper, seconded by Adee accepting the 2005 annual building inspection report from the Complex Superintendent, reporting that all buildings are in satisfactory conditions. Voting yes: Hanson, Adee, Lepper, Pavleck. Motion carried.

2005/12-20 Motion by Lepper, seconded by Adee to adjourn the meeting at 12:10 p.m. Voting yes: Hanson, Adee, Lepper; absent for vote: Pavleck. Motion carried.